Cliff Calculation. Congressional leaders strike optimistic tones last Friday after meeting with President Barack Obama about the so-called fiscal cliff of year-end budget issues, including $1.2 trillion in “sequestration” cuts to long-term defense spending. Senate Leaders Harry Reid (D-Nev.) tells reporters after the White House gathering that he feels “very good” about the talks. “We have the cornerstones of being able to work something out,” he says. House Speaker John Boehner (R-Ohio) references the “framework” he wants that includes tax reforms and savings in entitlement-program spending. “I believe that the framework that I’ve outlined is consistent with the president’s call for a fair and balanced approach,” Boehner says after leaving the White House. Obama insists tax cuts for the wealthiest Americans must expire, something Boehner and other Republicans have resisted. At the outset of the meeting, Obama says: “Our challenge is to make sure that we are able to cooperate together, work together, find some common ground, make some tough compromises, build some consensus to do the people’s business.”
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